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ASML (ASML) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, ASML (ASML - Free Report) closed at $807.87, marking a +0.28% move from the previous day. This move outpaced the S&P 500's daily gain of 0.22%.

Prior to today's trading, shares of the equipment supplier to semiconductor makers had gained 8.05% over the past month. This has outpaced the Computer and Technology sector's gain of 2.07% and the S&P 500's gain of 1.86% in that time.

Investors will be hoping for strength from ASML as it approaches its next earnings release. The company is expected to report EPS of $4.67, up 57.77% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $16.04 per share and revenue of $22.27 billion, which would represent changes of +65.53% and +38.75%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for ASML. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.84% higher. ASML is currently a Zacks Rank #2 (Buy).

Digging into valuation, ASML currently has a Forward P/E ratio of 50.22. This valuation marks a premium compared to its industry's average Forward P/E of 19.12.

It is also worth noting that ASML currently has a PEG ratio of 1.5. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Semiconductor Equipment - Wafer Fabrication was holding an average PEG ratio of 1.03 at yesterday's closing price.

The Semiconductor Equipment - Wafer Fabrication industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 121, which puts it in the top 48% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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